Four Pakistani banks have ranked among the top 10 best-performing lenders in Asia-Pacific for 2024, according to a report by S&P Global Intelligence.
United Bank, which has a market capitalisation of $1.68 billion, recorded a total stock return of 159.7% to place second in a ranking of the region’s best-performing bank stocks. It trailed behind Indonesia’s PT Bank Artha Graha Internasional Tbk, which has a market cap of $270 million and made total returns of 193.2% in the year, the data shows.
National Bank of Pakistan (NBP) followed with a return of 108.4%, while Bank Alfalah Ltd (107.1%) and Bank of Punjab (98.4%) also made the top 10.Â
Additionally, Allied Bank Ltd (ABL) and Habib Metropolitan Bank Ltd secured 14th and 15th positions, recording returns of 94.5% and 93.2%, respectively.
S&P attributed the strong performance of Pakistani banks to a recovery in the country’s economy during the second half of 2024, supported by an International Monetary Fund (IMF) funding program. This economic rebound coincided with surging inflation and earlier share price recoveries, bolstering the banking sector.
Japan was the only country with multiple lenders in the top 10 best performers, while the remaining spots were taken by one bank each from Indonesia, Vietnam, Bangladesh and the Philippines.
The data included Asia-Pacific banks with a market capitalisation exceeding $100 million as of December 31. Small-cap banks largely dominated the list, with only six of the top 15 exceeding $1 billion in market value.
The report also noted that Pakistani banks became blue-chip stocks as the Pakistan Stock Exchange (PSX) hit record highs during the final quarter of 2024.
Meanwhile, slower economic growth in China and India negatively impacted bank stocks in those countries. Seven Indian lenders, including RBL Bank Ltd and IndusInd Bank Ltd, were listed among the 15 worst-performing banks, with total returns declining between 38% and 43.1%.
Indian banks faced pressure from subdued credit growth and slower economic momentum. According to the Reserve Bank of India, the GDP growth rate for 2024–25 is projected at 6.6%, down from 8.2% in the previous fiscal year.
